PARLIAMENTARY EARLY DAY MOTION
FINANCIAL SERVICES COMPENSATION SCHEME (3 April 2011)

That this House is aware that, as part of the UK's regulatory environment for financial services, companies operating in the sectorare required to participateand, where necessary, contribute to the Financial Services Compensation Scheme (FSCS), which recently announced a further 50 per cent. increase in itslevies for the general insurance intermediary sector, following on from previous substantial increases made in both 2009 and 2010; notes that claims via this scheme continue to increase, largely due to the activities of banks and credit brokers, many of whom involved themselves in the mis-selling of payment protection insurance to their clients; recalls that during the recent financial crisis, unlike the market failure in those sectors, the UK's insurance industries remained largely stable and did not require Government support; and calls on the Government to begin immediately its promisedreview of the FSCS and not to countenance any further delay in fully examining the objectives of the scheme and the consequences of its actions.

Sponsored by:
Sir Alan Meale (Labour)